You’re probably familiar with a woman-owned business certification, but have you heard of a DBE? A DBE, or disadvantaged business enterprise, is a similar certification that’s awarded to businesses owned or primarily run by socially and economically disadvantaged individuals including women, minorities and other groups who have historically faced barriers to participation in federally assisted transportation contracts.
PointNorth is a certified DBE, woman-owned small business, and I’m glad we decided to put the work in to get the certification.
The certification wasn’t a check-the-box exercise. It took time and resources to not only understand the process, but to navigate the pounds of documents and a scrutinous in-person interview. This certification should reflect a thorough review of each firm to prevent fraudulent certifications. We were certified in 2018 as a DBE and WBE in Washington. We now have certifications in Oregon and Colorado. In fact, we were featured in a national DBE magazine in spring 2022 as one of the DBEs leading the Interstate Bridge Replacement program.
That being said, I find myself wondering if the DBE program is achieving the equity it set out to create.
May is Asian American, Native Hawaiian and Pacific Islander Heritage Month, and as I reflect on my heritage and my ancestors, I wonder if they would believe the DBE program creates the equity they fought for.
As a Native Hawaiian woman, I am the sole owner of the firm, and I cannot have a net worth greater than $1.32 million. Keep in mind this does not include the equity in my firm or my home but does include my retirement.
Until this month, these standards had not been adjusted since 2011. The new rule the federal government recently agreed to increases these limits. While this is great news, DBEs still face several challenges:
- Access to capital: growth requires funding, which is often hard to secure.
- Support from prime contractors: building capacity necessitates partnerships that are sometimes lacking.
- Prompt payment: timely payments are crucial for maintaining cash flow, and while we recognize we are a “paid when paid” sub-consultant, a few of our clients have instituted a 10-day payment cycle that helps significantly.
- Navigation of federal regulations: compliance can be a daunting task, and more guidance would provide much-needed peace of mind.
- Leadership representation: we need more DBEs at decision-making tables.
The U.S. Department of Transportation is well intended, and the updated standards will make a difference. With nearly 50,000 DBEs across the nation, they can and do play a critical role in major transportation projects. And for this certification program to be authentic, it must be more than a box to check or an exercise to achieve a contracting goal.
Our growth is directly linked to transportation departments requiring certified DBEs to participate in projects. We have experienced support and guidance, and we benefit from the program with advocates and allies investing in us. We have also experienced treatment as merely a “check-the-box” member of the team to achieve a goal. The contrast in how project leaders show up to support (or in some cases fear) DBEs can be significant.
Here’s my call to action:
- Prime contractors: Partner with us! We bring lived expertise that projects will benefit from if we have a seat at the table. Understand our unique challenges and work with us to creatively solve them. Your resources can empower us in ways we can’t achieve alone.
- Transportation departments: Continue to require DBEs participate in projects, actively provide resource support and guidance, and enforce prompt payment guidelines. Your authority can drive significant change.
- Fellow DBEs: Let’s collaborate and learn from one another rather than compete. There is more work in our region than folks to get it done. We value the opportunity to pass along a recommendation for other DBEs who can add lived expertise to a project let’s find more ways to continue to lift each other up.
The DBE program remains relevant and seeks to overcome the historically existing inequity. For those allies that have seen the value we bring, we continue to remain grateful.
Lisa Keohokalole Schauer is the president of PointNorth Consulting a woman-owned DBE firm in Vancouver, Washington, that offers strategic communications, community engagement and organizational development expertise in infrastructure, community development and education market sectors. Contact her at 360-583-6700 or lisa@pointnorthinc.com. The opinions, beliefs and viewpoints expressed in the preceding commentary are those of the author and do not necessarily reflect the opinions, beliefs and viewpoints of the Daily Journal of Commerce or its editors. Neither the author nor the DJC guarantees the accuracy or completeness of any information published herein. Copyright © 2024 BridgeTower Media. All Rights Reserved.
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